Stocks Rise, Led by Tech Shares

U.S. stocks resumed a familiar pattern Thursday, with tech shares rising sharply and outpacing the rest of the market.
The Nasdaq Composite rose 1.7%, following a 1.5% gain on Wednesday. The S&P 500 was up 0.8%, after the broad stocks gauge closed out a fourth consecutive quarterly advance on Wednesday, while the Dow Jones Industrial Average was up 0.2%.
Many investors are hopeful that stocks will continue to climb in the second quarter. Their optimism is pegged to the prospect of a surge in economic growth amid widespread vaccinations and fresh spending programs from the Biden administration. Still, they point to risks stemming from rising bond yields, new lockdowns in Europe and signs of excess in corners of the market.
Some are questioning whether this year’s rotation out of technology stocks and into economically sensitive sectors like banks and energy has gone too far. Having powered the broad market higher in 2020, the rally in tech stocks slowed in the first quarter as investors bought into companies that stood to benefit from the economic rebound.
That thinking was evident Thursday morning.


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